# In the matter of State Bank of India Vs. Sindhu Rajesh, CP (IBC)/19/KOB/2022

> NCLT judgment dated 2022-03-21. Citation: TCN-2022-NCLT-03653. The case involves multiple petitions (CP(IBC)/15/KOB/2022, CP(IBC)/16/KOB/2022,…

- **Court:** NCLT
- **Order date:** 21 Mar 2022
- **Citation:** TCN-2022-NCLT-03653
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/state-bank-of-india-vs-sindhu-rajesh-cp-ac63e6a6

## Summary

### Background

The case involves multiple petitions (CP(IBC)/15/KOB/2022, CP(IBC)/16/KOB/2022, CP(IBC)/17/KOB/2022, CP(IBC)/18/KOB/2022, CP(IBC)/19/KOB/2022) filed by State Bank of India under Section 95(1) of the Insolvency and Bankruptcy Code, 2016, read with Rule 7(2) of the Insolvency and Bankruptcy (Application to Adjudicating Authority for Insolvency Resolution Process for Personal Guarantors to Corporate Debtors) Rules, 2019, against personal guarantors of the Corporate Debtor, M/s. Propyl Packaging Limited. The Corporate Insolvency Resolution Process (CIRP) had already been initiated against the Corporate Debtor, followed by a liquidation order due to the absence of a resolution plan. The creditor had sanctioned credit facilities to the Corporate Debtor, which were secured by

…

## Facts

State Bank of India (SBI) sanctioned an overdraft facility of Rs 7.05 Crore and an International Letter of Credit Facility of Rs.4.70 Crore to M/s. Propyl Packaging Limited, the Corporate Debtor, against mortgage of properties. The Corporate Debtor executed a loan cum hypothecation agreement dated 05.12.2014 and a demand promissory note dated 05.12.2014. The credit facilities were enhanced to 16.80 Crore by a letter of arrangement dated 07.01.2017. The Corporate Debtor executed a Loan cum hypothecation agreement on 11.01.2017, and the Respondents (Mr. Rajesh K S, Mr. Satheesh Babu V. K, Mr. Saleesh K Satheesh, Mrs. Bindya Saleesh and Mrs. Sindhu Rajesh) executed Guarantee Agreements on 11.01.2017, guaranteeing the repayment. The Corporate Debtor defaulted, and the loan

…

## Issues and analysis

### Issue 1: Whether the petitions filed under Section 95 of the Insolvency and Bankruptcy Code, 2016, read with …

**Ratio:** Section 95 of the Insolvency and Bankruptcy Code, 2016, allows a creditor to initiate an

…

**Reasoning:** The court considered the provisions of Section 95 of the IBC, 2016, and the decision of

…

**Interpretation:** Section 95 provides a mechanism for creditors to pursue insolvency resolution

…

**Application:** The court applied Section 95 to the facts of the case, where the State Bank of

…

## Parties

- **Judges:** Ashok Kumar…; Anil Ku…
- **Appellants:** State Bank of…
- **Respondents:** M/s Propyl…; Mr.Rajes…

## Timeline

- **2014-11-28 — Letter of Arr…**: SBI sanctioned an overdraft facility of Rs 7.05 Crore as an International Letter of…
- **2014-12-05 — Loan Agre…**: Corporate Debtor executed loan cum…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 95(1) — Application by creditor to initiate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-95)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/state-bank-of-india-vs-sindhu-rajesh-cp-ac63e6a6